Kellogg to Cut Work Force by 7%, and That's Not All

Kellogg to cut 7 pct of workforce by 2017, profit rises 3 pct

Dive Brief:

• Kellogg Company announced its third-quarters earnings results on Monday, and the news came accompanied by word that it will eliminate 7% of its workforce by 2017.
• The company saw a 3% rise in quarterly profits as net income for the quarter hit $326 million (90 cents per share), up from $318 million in the same quarter last year.
• Kellogg also announced a new "global growth and efficiency program" called Project K, meant to bolster its business ventures at home while seeking out opportunities for growth in markets abroad.

Dive Insight:

We all know that Kellogg is in a tough spot right now, as interest in cold cereal has been withering and breakfast habits in general have drifted toward other products. Still, the company saw production costs for cereal go down, and it's placing a great deal of hope in snack foods like Pringles.

Nov 4 (Reuters) - Kellogg Co reported a 3 percent rise in quarterly profit, helped by a fall in cereal-making costs, and said it would slash 7 percent of its workforce by 2017.

The company's shares rose 1 percent in premarket trading.

Net income of the world's largest cereal manufacturer rose to $326 million, or 90 cents per share, in the third quarter ended Sept. 28 from $318 million, or 89 cents per share, a year earlier.

The maker of Corn Flakes, Chocos cereal and Eggo waffles said revenue fell marginally to $3.72 billion.

Kellogg announced a new cost-cutting program called Project K to strengthen existing businesses in its core domestic markets and increase growth in developing markets.

The program is expected to result in total pre-tax charges of between $1.2 billion and $1.4 billion, the company said.